Financial products based on a serialized index

ABSTRACT

A method for trading financial instruments includes listing, by an electronic financial exchange, financial instruments that specify which version of a serialized index the financial instrument tracks; receiving, by the electronic financial exchange, an electronic indication to buy or sell the financial instrument; executing, by the electronic financial exchange, a trade involving the financial instrument; and settling the financial instrument according to the version of the serialized index specified by the financial instrument.

CROSS REFERENCE TO RELATED APPLICATION

This application is as continuation of U.S. patent application Ser. No.13/657,279, filed Oct. 22, 2012, the subject matter of which isincorporated herein by reference.

TECHNICAL FIELD

The disclosure is generally related to financial instruments and marketindices, and more particularly to computer systems and methods forlisting and trading financial instruments that track market indices.

BACKGROUND

Market indices are popular tools used by investors to describe andevaluate the performance of different areas of the financialmarketplace. For example, market indices may be used for evaluating theperformance of an entire stock market exchange, the performance ofstocks of companies in a particular market segment, the performance ofmajor high technology companies, the performance of growingbiotechnology companies, etc. Additionally, market indices may be usedto evaluate purpose-defined market segments, such as, for example, asubset of debt obligations. Market indices may also be created and usedto pursue a wide variety of other goals.

In general, market indices are mathematical constructs based on aweighted aggregated value of one or more underlying assets. Becausemarket indices are mathematical constructs, investors may not directlyinvest into market indices. Investors may, however, invest in financialinstruments that attempt to mirror the performance of a market index.This may be accomplished, for example, by creating a fund that includesmany of the same assets constituting a particular market index, andissuing financial instruments (such as securities) that represent thefund. Alternatively, financial institutions may issue financialinstruments that are contracts that settle according to the value of amarket index on a specified date. However, purchasing such financialinstruments may not adequately hedge risks to which investors areexposed if the underlying market index is continually modified ratherthan new compilations of such market index being serialized, i.e.,investors cannot currently continue to trade prior versions of a marketindex, but are instead limited to only trading the current compilationof such index.

Consequently, it is highly desirable to create a new type of financialinstrument that is linked to or ‘tracks’ an index configured to retaineach version of the index as it undergoes periodic and/or previouslyunannounced changes. Such a financial instrument would allow an investorto invest in any version of the index, including a future version thatdoes not yet exist.

SUMMARY

The present disclosure relates generally to a method for tradingfinancial instruments that track a particular version of a serializedindex. In one embodiment, financial instruments may be listed by acomputing device. Each financial instrument may specify which version ofthe serialized index it tracks. Once listed, an electronic financialexchange system may receive buy and sell indications for the purchase orsale of the financial instrument. A financial instrument trade may beexecuted by the electronic financial exchange system. The trade may thenbe settled according to the version of the serialized index specified bythe financial instrument.

In another embodiment, various financial instruments may track variousversions of the serialized index. These various financial instrumentsmay be listed for trading via an electronic financial exchange system.

In yet another embodiment, designated versions of a serialized index maybe established over time. Several financial instruments, each tracking adifferent designated version of the serialized index, may then be listedand traded. More specifically, the financial instruments may be tradedbased on the designated version of the serialized index tracked by eachof the financial instruments.

In yet another embodiment, multiple versions of a serialized index maybe defined and transmitted to a financial institution server. Someversions of the serialized index may then be tracked by any number offinancial instruments.

A system for trading financial instruments may include a listing module,an orders module, a trade execution module and a settlement module. Thelisting module may be configured to list financial instrumentsspecifying the version of a serialized that is tracked by each financialinstrument. The orders module may be configured to receive buy and sellindications for the financial instruments. The trade execution modulemay be configured to execute trades involving the financial instruments.The settlement module may be configured to settle each financialinstrument using the value of the version of the serialized indextracked by each respective financial instrument.

In another embodiment, a system for trading financial instruments mayinclude an index server, a financial institution server, and an exchangeserver. The index server may be configured to define a serialized index,and to define several versions of the serialized index. The financialinstitution server may be configured to provide financial instrumentsthat track one or more versions of the serialized index. The exchangeserver may be configured to execute trades of the financial instruments.

In yet another embodiment, a system for creating a serialized index mayinclude a configuration module and a transmission module. Theconfiguration module may be configured to define several versions of theserialized index, and the transmission module may be configured totransmit the definitions of the versions of the serialized index to oneor more servers, where the versions of the serialized index may betracked by one or more financial instruments.

BRIEF DESCRIPTION OF THE DRAWINGS

The foregoing summary and the following detailed description are betterunderstood when read in conjunction with the appended drawings.Exemplary embodiments are shown in the drawings, however, it isunderstood that the embodiments are not limited to the specific methodsand instrumentalities depicted herein. In the drawings:

FIG. 1 is a block diagram illustrating an exemplary system for tradingfinancial instruments that track multiple versions of a serializedindex, according to various embodiments.

FIG. 2 is a chart illustrating exemplary financial instruments that maytrack multiple versions of a serialized index.

FIGS. 3 a-3 b are flowcharts illustrating alternative exemplary methodsof listing, trading and settling financial instruments that may trackmultiple versions of a serialized index.

FIG. 4 is a diagram illustrating an exemplary composition of severalversions of a serialized index according to various embodiments.

DETAILED DESCRIPTION

The present disclosure relates generally to systems and methods forgenerating and maintaining a serialized index, wherein each time a newversion of the serialized index is created one or more prior versions ofthe index may remain active. As a result, financial institutions may beconfigured to track a current, future, or prior version of theserialized index. In one embodiment, such financial instruments may belisted by an electronic financial exchange. The electronic financialexchange may then receive buy and sell orders for the financialinstruments, execute trades and settle the financial instrumentsaccording to the version of the serialized index specified by thefinancial instrument.

For purposes of this disclosure, a financial instrument shall mean anyreal or virtual document representing a legal agreement involving somesort of monetary value. In an exemplary embodiment, a financialinstrument may refer to a financial derivative, which is simply afinancial instrument whose price depends upon, or is derived from, oneor more underlying assets. Such underlying assets may include, forexample, stocks, bonds, commodities, currencies, interest rates andmarket indices. In the case of market indices, fluctuations inparticular underlying market index may be used to determine the value ofthe financial derivative. Financial derivatives that depend from (i.e.,are priced based on) a value of a market index are said to “track” thatmarket index. Such financial derivatives may include (without limit):futures contracts, forwards contracts, options contracts, swapscontracts, etc.

A market index refers to an aggregate value produced by combiningseveral investment vehicles together and computing their total values,where the value of each vehicle may be adjusted by a weighting factor. Aserialized index is therefore a series of one or more versions of aparticular market index, each linked or related to each other, while atthe same time defining a respective combination of investment vehicles.For purposes of this disclosure, the investment vehicles that comprise aparticular version of a serialized index shall be referred to asconstituents, and may include (without limit) stocks, bonds, securities,commodities, mutual funds, other market indices, forwards, options, andderivatives. Further, when combined to form a particular serializedindex version, each constituent may be weighted, as desired, to controlthe influence that a particular constituent has on the aggregated valueof the index version. Thus, for example, constituents with higherweightings will have more influence over the aggregated value of anindex version than constituents with lower weightings.

A version of a serialized index, as noted above, refers to a particularembodiment or incarnation of a series of related market indices. Thus,for example, a first version of a serialized index may be defined bythree particular constituents, namely, Constituent 1, Constituent 2 andConstituent 3. For purposes of this example, it will be assumed thateach of Constituents 1, 2 and 3 are weighted equally. A second versionof this serialized index may therefore be defined by applying differentweighting values to the same three constituents and/or by adding orremoving constituents. A third version may even be defined by simplyremoving Constituent 3 from the combination defined by the secondversion. Collectively, versions 1-3 and/or other versions comprise aserialized index. Notably, creation of a current or subsequent versiondoes not necessarily result in deletion of a prior version. In otherwords, version 2 of the serialized index will not necessarily replaceversion 1. To the contrary, any of the versions may co-exist with anyother versions, and cancellation or discontinuation of a version willnot necessarily affect any other version.

In a first exemplary embodiment, the present disclosure relates to amethod of trading financial instruments that track a serialized index.As an initial step, the method includes listing, via one or morecomputing devices, a financial instrument for purchase or sale. Forpurposes of this disclosure, listing a financial instrument refers togenerating and posting data defining the financial instrument on anelectronic financial exchange that is accessible by one or more tradingparticipants via, for example, computer terminals. As further discussedbelow, the generating and/or posting functions may be accomplished at asingle facility, or by multiple facilities using one or more devicessuch as, for example, computer servers. If multiple facilities are used,data defining the financial instrument may be defined at a firstfacility using one or more computer servers. The data defining thefinancial instrument may then be transmitted over a wired or wirelesselectronic communications network to one or more computer servers at asecond facility. Once received at the second facility, the data definingthe financial instrument may be posted so that trading participants withaccess to the second facility (such as via participant computerterminals) are able to view the financial instrument. The communicationsnetwork may comprise any of the following: the Internet, an intranet, atelephonic network, a cellular network or any other type of a datanetwork.

Since the financial instrument tracks a serialized index, the financialinstrument may specify which version of the serialized index thefinancial instrument tracks. For example, the a particular financialinstrument may specify that the instrument tracks the third version ofthe serialized index. Notably, in one embodiment, the third version doesnot need to exist at the time this financial instrument is created andlisted. To the contrary, the third version for any other versionspecified in any financial instrument) may be created before, concurrentwith or after the financial instrument is created and listed fortrading. It is also noted that additional financial instruments, alsotracking the same version (e.g., the third version), may be created,listed and available for trading at the same time. Similarly, multiplefinancial instruments, tracking different versions of the serializedindex, may also co-exist and be listed and available for trading at thesame time.

Once the financial instrument is listed, participants may view andsubmit electronic indications to buy or sell the financial instrumentover a wired or wireless communications network using, for example,participant computer terminals. In one embodiment, the electronicindications may be received directly by an electronic financial exchangeserver. The participant computer terminals may comprise remote servers,mobile communication devices, desktop computers, smart phones, PDAs(personal data assistants), mobile computers, tablet computers, or anyother device configured to communicate electronic indications.

Upon receiving an acceptable indication to buy or sell the financialinstrument, a trade for the financial instrument may be executed via,for example, the electronic financial exchange server listing thefinancial instrument or by any other trade execution module embodied inone or more other computing devices. Then, on a specified date, thefinancial instrument may be valued and settled according to the versionof the serialized index specified by the financial instrument. Thissettlement may be accomplished via one or more computer devices at aseparate clearing facility or at the facility listing the financialinstrument.

In a second exemplary embodiment, the present disclosure relates toanother method of trading financial instruments that tracks a serializedindex. As an initial step, the method includes providing, via one ormore computing devices, a serialized index. For purposes of thisdisclosure, providing a serialized index may include defining and makingavailable, in any fashion, the definition of the constituent compositionof one or more versions of the serialized index. The constituentcomposition of each version of the serialized index may include arespective combination of constituents and their associated weightings.Each version of the serialized index may be defined and/or provided byan index definition system. Such an index definition system may compriseone or more servers, residing at a single location or across multiplelocations, where each server may comprise associated databases that maystore the definitions of the one or more versions of the serializedindex. The index definition system may use a wired or wirelesscommunications network to transmit the index definitions and versioncompositions internally amongst its one or more servers, or to otherremote computer devices. The index definitions may include a currentversion of the serialized index and one or more prior versions that weredefined in the past. In another embodiment, some versions may have beendiscontinued prior to, upon the creation of, or after the creation of acurrent version. The current version of the serialized index and a priorversion of the serialized index may have different constituents and/ordifferent constituent weightings. Notably, however, current and priorversions may co-exist.

Once the serialized index is provided, one or more computing devices mayprovide one or more financial instruments that track one or more of theindex versions. These computing device may be a part of a financialexchange system, or they may simply be a part of a larger network ofdevices. For purposes of this disclosure, providing a financialinstrument refers to defining and/or storing the specific terms of thefinancial instrument, including the terms of the underlying financialagreement which specifies which version of the serialized index will betracked, and performing all other steps needed to define and make thefinancial instrument available for trading. For example, if thefinancial instrument is a futures contract, providing a financialinstrument may include specifying which version of a serialized indexwill be tracked, and defining the date on which the futures contractwill be settled. Additionally, providing a financial instruments mayalso comprise registering the financial instrument with an appropriateregulatory authority and complying with all other legal requirements. Inone embodiment, financial instruments may be provided by the same systemthat provides the serialized index. In another embodiment, financialinstruments may be provided by one or more servers belonging to anindependent financial exchange facility. Wired or wireless networks maybe used to communicate the terms of the financial instruments to otherdevices within or across various facilities and/or systems.

Once the financial instruments are provided, one or more computingdevices, e.g. servers, may list the financial instruments for purchaseor sale. One or more of these computing devices may be a part of, forexample, one or more financial exchange systems. For purposes of thisdisclosure, listing a financial instrument for purchase or sale refersto generating and posting data defining the financial instrument on afinancial exchange, and making the data accessible by one or moretrading participants via, for example, one or more computing devices. Inone embodiment, the computing devices that list the financialinstruments may be a part of or otherwise associated with, the samesystem that provides financial instruments.

As noted above, the listed financial instruments may track theserialized index. Consequently, each of the financial instruments mayspecify which version of the serialized index is tracked. Notably,multiple financial instruments may track different versions of theindex. For example, one financial instrument may track a first versionof a serialized index that is already defined, while another financialinstrument may track a second version the serialized index that may bedefined in the future. Yet another financial instrument may specify thatit will be settled on a designated date according to the version of theserialized index that will be current on that designated date.

Once a particular listed financial instrument is traded, it may bevalued and settled according to the version of the serialized indexspecified by that financial instrument. This settlement may beaccomplished, for example, via one or more computer devices comprising aseparate system or network, and/or by computer devices comprising asystem associated with a financial exchange system that lists financialinstruments. The settlement functionality may, for example, comprisecalculating the amounts of funds that are due to be delivered to one ormore of the trading participants, wherein the calculation may beaccomplished using the value of the tracked version of the serializedindex on a specified date.

In a third exemplary embodiment, the present disclosure relates to amethod of trading financial instruments that track a serialized indexvia one or more computing devices. As an initial step, the methodincludes providing, via one or more computing devices, a serializedindex. As indicated above, providing may include defining and makingavailable, in any fashion, the definition of the composition of one ormore versions of the serialized index. The listing feature may beperformed by an index facility, for example, using one or more devicessuch as computer servers. In one embodiment, a designated first versionof the serialized index may be provided initially. After a certainperiod of time, a designated second version of the serialized index mayalso be provided. After another period of time, a designated thirdversion of the serialized index may be provided, and so on. Successiveversions may differ from one another based on their selection ofconstituents, combination of constituents and/or constituent weightings.The time periods between successive versions may be regular, defined inadvance, irregular and/or not defined in advance. Notably, a wired or awireless network may be used to make the index definitions and versionconstituent compositions available to other computing or communicationdevices.

Once the serialized index is provided, one or more exchange systems maylist financial instruments via or more computer devices, wherein eachfinancial instrument may track a particular designated version of theserialized index. As discussed above, listing a financial instrument mayinclude generating and posting data defining the financial instrumentvia an exchange system that is accessible by one or more tradingparticipants. Once the data defining the financial instruments isposted, trading participants with access to the exchange system (such asvia participant computer terminals) are able to view, access andinitiate transactions relating to the financial instruments.

Each of the listed financial instruments may track a particulardesignated version of a serialized index. For example, one listedfinancial instrument may track a designated first version of theserialized index, while another listed financial instrument may track adesignated second version of the serialized index, whether said secondversion currently exists or whether said second version is to be createdin the future.

Once the financial instruments are listed, one or more financialexchange systems may trade a selected financial instrument that tracks adesignated version of the serialized index. For purposes of thisdisclosure, trading a financial instrument refers to executing any kindof a financial, transaction involving a financial instrument. Suchtrading functions may be accomplished by a financial exchange systemusing one or more devices, such as computer servers, based on buy andsell orders received from one or more client computer terminals. Thetrading functions may also be based on the information related to theparticular designated version of the index being tracked by thatfinancial instrument.

In yet another exemplary embodiment, the present disclosure relates to amethod of maintaining a serialized index by one or more computingdevices. As an initial step, the method includes defining, via one ormore computing devices, one or more versions of a serialized index.Defining a version of a serialized index, for the purposes of thisdisclosure, may include selecting, combing and making available, in anyfashion, a combination of constituents and their associated constituentweightings. This defining feature may be performed by one or moredevices such as computer servers, and may also include defining multipleversions of the serialized index. For example, a first version of theserialized index may be defined first. After a certain time period, asecond version of the serialized index may be defined. The first versionand the second version may be defined to have different constituentsand/or different associated constituent weightings.

Once the one or more versions of the serialized index are defined, theymay be transmitted to other devices, for example, via a wired or awireless network. In one embodiment, the data defining the versions ofthe serialized index may be transmitted to one or more financialinstitution servers. Each version of the serialized index may be trackedby one or more financial instruments. For example, one financialinstrument may be a futures contract whose settlement may be based onthe value of a particular version of a serialized index on a particulardate. Other financial instruments may simultaneously track the sameand/or other versions of the serialized index.

Notably, one or more of the method steps and/or processing featuresdiscussed above may be performed by one or more computing devices,residing in one or more connected systems or networks, comprising one ormore processors executing instructions stored in a memory. In oneembodiment, a computer system for trading financial instruments thattrack one or more versions of a serialized index comprises one or moreprocessors configured to execute instructions stored on a non-transitorymemory. The instructions, when executed, may define a listing a module,an orders module, a trade execution module and a settlement module.

The listing module may be configured to list a financial instrument forpurchase or sale. For purposes of this disclosure, listing is financialinstrument for purchase or sale may include generating and posting datadefining the financial instrument on a financial exchange system thatmay be accessible by one or more trading participant computingterminals. The posted data may also be made available for use by othermodules of the system. The posted data may define, among other things,which version of the serialized index is to be tracked by each financialinstrument. For example, one financial instrument may be defined totrack a particular version of the serialized index, while anotherfinancial instrument may be defined to track a “to-be-created” versionof the serialized index that will be defined in the future. Differentversions of the serialized index may be defined to have differentconstituents Alternatively, different versions of the serialized indexmay be defined to have the same constituents as other versions, but withdifferent associated constituent weightings.

A most recently defined version of the serialized index may bedesignated as current, while all other previously defined versions maybe designated as prior versions. The listing module may be configured tolist one or more financial instruments that always tracks the “current”version of the serialized index. The listing module may, at the sametime, be configured to list other financial instruments that track oneor more of the prior versions of the serialized index.

The orders module may be configured to receive electronic indications tobuy and sell financial instruments over a wired or wirelesscommunications network that were sent, for example, via participantcomputer terminals. The electronic indications may specify which listedfinancial instrument is to be sold or bought, a desired price, a desireddelivery time, a desired quantity and any other pertinent information.The orders module may, optionally, aggregate the received electronicindications and make the aggregated data available to other modules ofthe system.

The trade execution module may be configured to use the data received bythe orders module to execute trades involving the listed financialinstruments. The trade execution module may be configured to match buyand sell orders and, for example, determine the final price of afinancial instrument using price determination algorithms. The tradeexecution module may further be configured to send digital tradeconfirmation data of an executed trade to participant computer terminalsand/or post-trade processing systems using a wired or a wirelessnetwork.

The settlement module may be configured to use the data defining thefinancial instrument to settle the financial instrument on a specifieddate. The settlement module may further be configured to value andsettle a financial instrument by using the value of the version of theserialized index specified by the financial instrument. The settlementmodule may also be configured to communicate with a separate clearingfacility, that comprises one or more computer devices, via a wired orwireless network. For example, if a financial instrument according tothe present disclosure comprises a futures contract that is defined tosettle according to a particular version of a serialized index, thesettlement module may perform the necessary calculations to determinethe value of the contract, and transfer appropriate funds to or fromappropriate participant account(s).

In another exemplary implementation, a computer system for trading,financial instruments that track a serialized index may comprise anindex server, a financial institution server and an exchange server.These servers may reside at one or more facilities and/or be a part of aone or more systems or networks, and they may communicate with eachother using wired or wireless network(s). The servers may compriseprocessors configured to execute instructions stored on a non-transitorymemory. Execution of the instructions may cause the servers to performany of the features described below.

The index server may be configured to define a serialized index. Thisindex server may further be configured to store the constituentscompositions and the associated constituent weightings of one or moreversions of the serialized index in the index server memory. The indexserver may also be configured to use a wired or wireless communicationsnetwork to transmit the version compositions and/or weightings to otherdevices (e.g., computers or servers). One or more versions of theserialized index stored by the index server may concurrently comprise acurrent version of the serialized index and one or more versions of theserialized index that were defined in the past and are no longercurrent. In another embodiment, some prior versions of the serializedindex may be designated discontinued. The current version of theserialized index and a prior version of the serialized index may havedifferent constituents and/or different constituent weightings.Additionally, current and prior versions may coexist and may be trackedby one or more financial instruments at the same time.

The financial institution server may be configured to receive thedefinitions of the versions of the serialized index, and to provide oneor more financial instruments designed to track specific versions of theserialized index. In one embodiment, the financial institution servermay be connected to, or be a part of the index server. In order toprovide one or more financial instruments, the financial institutionserver may be configured to define and store the specific terms of afinancial instrument and perform all other necessary steps needed tomake the instrument available for trading. The financial institutionserver may also be configured to use a wired or a wireless network tocommunicate the terms and other details of the financial instrument toother devices such as computers, servers, etc. The terms and/or otherdetails of the financial instrument stored by the financial institutionserver may specify which version of the serialized index is to betracked by the financial instrument.

The exchange server may be configured to list for purchase or sale thefinancial instruments that are provided by the financial institutionserver. The exchange server may be configured to list a financialinstrument by generating and/or storing data defining the financialinstrument, and making the data accessible by, for example, one or moretrading participants' computer terminals. In one embodiment, theexchange server may be a part of a financial institution server thatprovides financial instruments. The listed financial instruments maytrack the serialized index, consequently specifying which version of theserialized index is tracked. Multiple financial instruments may trackdifferent versions or the same version of the serialized index. Theexchange server may be configured to list the financial instruments inaccordance with terms specified by each financial instrument. Inaddition, the exchange server may be configured to conduct trades thattake into account the settlement date and the version of the serializedindex that is tracked by a particular financial instrument.

Upon receiving an acceptable indication to buy or sell a financialinstrument, the exchange server maybe be configured to execute a tradeinvolving the financial instrument. Then, on a specified date, theexchange server may be configured to value the financial instrument andto settle the financial instrument according to the version of theserialized index specified by the financial instrument. Alternatively,the exchange server may be configured to transmit executed trade data toa post-trade processing facility.

In another exemplary embodiment, a computer system for maintaining aserialized index may comprise one or more processors configured toexecute instructions stored using a non-transitory memory. Theinstructions may define a configuration module and a transmissionmodule.

The configuration module may be configured to define one or moreversions of a serialized index, and to store the list of constituentsand associated constituent weightings for each version of the serializedindex. Each version may comprise a different list of constituents and/ordifferent associated constituent weightings. The configuration modulemay be configured to store the data defining the versions of theserialized index and to make that data available to other modules of thesystem.

The transmission module may be configured to transmit data relating tothe serialized index versions to other computing/communication devices,or to other elements of the system. For example, the transmission modulemay use a wired or a wireless network to transmit data defining aserialized index version to one or more financial institution servers.The different versions of the serialized index may be tracked by one ormore financial instruments. Each financial instrument may specify whichversion of the serialized index is tracked.

Turning now to FIG. 1, an exemplary embodiment of a system 100 forlisting and trading financial instruments according to this disclosureis shown. The system 100 comprises one or more investor terminals 110,an electronic financial exchange server 120, a financial institutionserver 130 and an index maintainer server 150. These elements may beconnected by one or more wired or wireless networks 101 a, 101 b, 101 c.For example, the networks 101 a, 101 b, 101 c may comprise a publiccomputer network such as the Internet, an intranet, a telephone networkand/or a cellular network. The networks 101 a, 101 b, 101 c may refer toone single network or to a combination of networks of several differenttypes.

The index maintenance server 150 may be configured to store serializedindex information. The index maintenance server 150 may comprise one ormore index databases 155 that may store data defining one or moreserialized indices including the index constituents and the constituentweightings. Constituents may include, but are not limited to, stocks,bonds, securities, commodities, mutual funds, other indices, swaps,forwards, option and derivatives or any other type of a financialsecurity. The one or more index databases 155 may also store datadefining any number of index versions. For example, the data defining afirst version of the serialized index 156 may include a list ofconstituents along with their associated weightings 157. The one or moreindex databases 155 may also store the data defining, e.g., a secondversion of the serialized index 158, which includes its combination ofconstituents and associated constituent weightings 159. Notably,constituents of the second version 158 of the serialized index and/orthe associated weightings 159 may be different from those of the firstversion of the serialized index 156.

One of the versions of the serialized index may be designated as thecurrent version. For example, data defining the second version of theserialized index 158 may be considered the current version of theserialized index, since it was created last. Other versions of theserialized index may be designated as a prior versions. The versionsthat have not been created yet may be designated as future versions.Thus, data defining the first version of the serialized index 156 may bedesignated a prior version of the serialized index because it wascreated prior to the second version 158. When data defining a newversion of the serialized index is added to the one or more indexdatabases 155, this new version may become designated as the currentversion, while all other versions, including the previously designatedcurrent version, may become (or remain) designated as prior versions.Some versions of the index may also be designated as “discontinued” or“terminated.” The versions of the serialized index may be defined usingversion numbers or names, such that the version numbers or namesindicate the order in which the index versions were created.

The index maintenance server 150 may communicate with the financialinstitution server 130 via a network 101 c. Financial institution server130 may receive the serialized index data from the index maintainerserver 150 via said network 101 c.

In one embodiment, the financial institution server 130 may storeinformation defining financial instrument offerings using one or morefinancial databases 131. One or more of the financial instrumentofferings 135, 136, 137 may track one or more versions 156, 158 of theserialized index.

A financial instrument may track a version of the serialized index ifthe terms of the financial instrument relate in any way to the value ofthat version of the index, or if the price of the financial instrumentdepends on the value of that version of the index. For example, thefinancial instrument may be a futures contract designed to be settledaccording to a value of a specific version of the serialized index. Inanother example, the financial instrument may track an index byrepresenting a purchase of all constituents of the index in proportionto the constituent weightings. Such financial instruments 135, 136, 137may include but are not limited to, futures contracts, forwardcontracts, options contracts and swap contracts.

In the embodiment illustrated by FIG. 1, financial instrument 135 may bedesigned to track version 1 of the serialized index 156, while a secondfinancial instrument 136 may be designed to track version 2 of theserialized index 158. In another example, a third financial instrument137 may be designed to always track a “current” version of theserialized index, which may change as new versions of the serializedindex are created and become designated as “current.”

The financial institution server 130 may communicate with the electronicfinancial exchange server 120 to receive financial instrument data (135,136, 137). The electronic financial exchange server 120 may then listthe financial instruments defined by the data stored on the financialinstitution sever 130. This communication may be carried out via, forexample, a network 101 b.

The electronic financial exchange server 120 may use the data andinformation received from the financial institution server 130 to listand facilitate trading of the financial instruments 135, 136, 137.Optionally, the financial exchange server 130 and the financialinstitution server 120 may be a part of the same institution or even bea part of the same server. The electronic financial exchange server 120may comprise a listing module 121 for listing the financial instruments135, 136, 137. Each of these financial instruments 135, 136, 137 maytrack a specified version of the serialized index. The listing module121 may also store information about the financial instruments 135, 136,137 and make such information available for viewing by users via, forexample, investor computing terminals 110.

The electronic financial exchange server 120 may also comprise an ordersmodule 122. The orders module 122 may be configured to receive buy andsell orders for financial instruments 135, 136, 137 listed by thelisting module 121, when each financial instrument specifies whichversion of the index it tracks. In one embodiment, the orders arereceived from the investor terminals 110 via a network 101 a. Theelectronic financial exchange server 120 may also comprise a tradeexecution module 123 configured to execute financial instrument tradesbased on the orders received by the orders module 122. Additionally, theelectronic financial exchange server 120 may also comprise a settlementmodule 124. In one embodiment, the settlement module 124 may communicatewith a clearinghouse server (not shown) to settle trades for financialinstruments according to the version of the serialized index that thefinancial instruments track. In another embodiment, the settlementmodule 124 may itself settle trades for financial instruments accordingto the version of the serialized index each financial instrument 135,136, 137 tracks. For example, a financial instrument may be settled bycalculating a financial obligation based on the value of the version ofthe serialized index that the financial instrument tracks.

The investor terminals 110 may communicate with the electronic financialexchange server 120 via network 101 b to submit buy and/or sell ordersfor financial instruments 135, 136, 137 that track specific versions ofthe serialized index. In one embodiment, the investor terminals 110 maybe configured to communicate with the electronic financial exchangeserver 120 via a broker server (not shown). The investor terminals 110may comprise any device capable of sending electronic indications viathe network 101 a. For example, the investor terminals 110 may comprisea laptop computer, a server, a smartphone, a desktop computer, a kioskand/or any other electronic computing or communication device.

The various components described herein with respect to the system 100may include one or more computing devices, hand-held communicationdevices, mobile computers and/or any other electronic communicationmeans. The components may be described in the general context ofcomprising computer-executable instructions, such as program modules,being executed by a computer. Generally, program modules may includeroutines, programs, objects, components, data structures, or the likethat perform particular tasks or implement particular abstract datatypes.

Turning now to FIG. 2, a chart illustrating an exemplary relationship200 between financial instruments 251-255 and specific versions 213-215of a serialized index 210 is shown.

The serialized index 210 shown in FIG. 2 may be defined to achieve aparticular goal, such as, e.g., providing an analytical tool for aspecific market segment. In another embodiment, the goal of theserialized index 210 may be used to track debt loads. The indexdefinition may also contain the name of the index, methods used forcreating new versions of the serialized index, time intervals at whichnew versions of the serialized index may be created and other pertinentserialized index information.

A version 1 (213) of the serialized index 210 may include a firstcombination of constituents along with their respective weightingfactors. In one embedment, version 2 (214) of the serialized index 210may have been created after a predetermined time period following thecreation of version 1 (213). Version 2 (214) may be created, forexample, by changing the weighting factors of the constituents and/or byadding new constituents and/or removing constituents that define version1 (213).

Version X (215) refers to yet another version of the serialized index210, where X represents an arbitrary integer. Version X (215) of theserialized index 210 may be created from any prior version of the of theserialized index 210 in a manner similar to that in which version 2(214) of the serialized index 210 may be created from version 1 (213) ofthe serialized index 210. In one embodiment, an arbitrarily large numberof serialized versions may be created and maintained. All versions ofthe serialized index (210), 1 through X (213-215), may be stored andmaintained for any period of time where any of the versions 1 though X(213-215) may co-exist. In one embodiment, versions of the index 213,214 and 215 may be defined by a computing device such as a server.

Financial instruments 251, 252, 253, 254 and 255, refer to financialinstruments that may be listed by, e.g., by an electronic financialexchange server 250. The listing of the financial instruments 251-255may enable investor terminals, in communication with the electronicfinancial exchange server 250, to place buy and sell orders for thelisted financial instruments 251-255. The first, second, third, fourthand Nth financial instruments 251-255 may be created and listed in anyorder. In addition, an arbitrary number of financial instruments may becreated and/or listed between the creation and listings of the first andNth financial instruments.

In one embodiment, the Nth financial instrument 255 may always track the“current” version of the serialized index 210, as indicated by thedotted line in FIG. 2. For example, when the Nth financial instrument255 was first created and listed, version 1 (213) of the serializedindex 210 may have been the “current” version. If the Nth financialinstrument 255 would have been settled before any more versions of theserialized index were created, the value of version 1 (213) of theserialized index 210 would have been used to settle the Nth financialinstrument 255. However, versions 2 through X have since been created,and version X (215) is now designated as “current.” Consequently, theNth financial instrument now tracks version X (215). Notably, version 1(213) of the serialized index 210 may still be tracked, e.g., by thefirst financial instrument 251, even after other version becomesdesignated “current.”

In another embodiment, the second financial instrument 252 may bedesignated to track version 2 (214), but be listed before the version 2(214) of the serialized index 210 is created. In this embodiment, thesecond financial instrument 252 may be traded before the version 2 (214)of the serialized index 214 is created. Consequently, the secondfinancial instrument 252 will begin tracking the version 2 (214) of theserialized index 210 when it is created.

In yet another embodiment, the third financial instrument 253 may alsobe designated to track version 2 (214). This third financial instrument253 may be listed after the version 2 (214) of the index 210 is created.Notably, this third financial instrument 253 may continue tracking theversion 2 (214) of the serialized index 210 even after other versions ofthe serialized index are created. For example, the third financialinstrument 253 may continue tracking the version 2 (214) of theserialized index 210 after the version X (215) of the serialized index210 is created.

In FIG. 2, certain financial instruments are shown tracking certainspecific versions of a serialized index 210, however, any one of thesefinancial instruments may be designated to track any version of theserialized index 210, whether such instrument is created before or afterthe particular version of the serialized index being tracked.

With reference to FIG. 3A, an exemplary method 300 of listing andtrading financial instruments that track a “future” version of aserialized index is illustrated. One or more computing devices thatinclude a memory for storing instructions and a processor for executingthe instructions may be utilized to perform the steps of the illustratedmethod 300.

At 301, a serialized index is created. At this step, the goals of theserialized index may be defined. In one embodiment, a schedule of newversion releases may be defined at this step. In another embodiment, thenew versions of the serialized index may be released at predictableintervals, for example every six months. In another embodiment, newversions may be released at any time on as-needed basis or as-desired.

At 305, version 1 of the serialized index is created. At this step, theconstituents of the version 1 of the serialized index may be definedalong with their associated weighting factors.

At 310, a financial instrument designed to track version 2 of theserialized index is created and listed. At this step, the exact terms ofthe financial instrument may be defined. Since version 2 of the indexdoes not exist yet, the price of the instrument tracking version 2 atthis point may only be determined by market interest in this financialinstrument.

At 315, buy/sell orders for the financial instrument designed to trackversion 2 of the serialized index may be received, e.g., at an exchangeserver. At 320, a trade for the financial instrument designed to trackversion 2 of the serialized index may be executed, based on the receivedorders.

At 325, version 2 of the serialized index is created. At this step, theconstituents of the version 2 of the serialized index may be definedalong with their associated weighting factors.

At 330, the financial instruments designed to track version 2 of theserialized index is settled. For example, if the financial instrumentdesigned to track version 2 of the serialized index is a futurescontract, then cash payments based on the value of the version 2 of theserialized index may be delivered to investors' accounts via, forexample, associated investor terminals, based on the terms of thefinancial instrument.

With reference to FIG. 3B, an exemplary method 350 of listing andtrading financial instruments that track a “prior” version of aserialized index is illustrated. One or more computing devices thatinclude a memory for storing instructions and a processor for executingthe instructions may be utilized to perform the steps of the illustratedmethod 350.

At 351, a serialized index is created. At this step, the goals of theserialized index may be defined. In one embodiment, a schedule of newversion releases may be defined at this step. In another embodiment, thenew versions of the index may be released at predictable intervals, forexample, every six months. In another embodiment, new versions may bereleased at any tune on as-needed basis or as-desired.

At 355, version 1 of the serialized index is created. At this step, theconstituents of the version 1 of the serialized index may be definedalong with the associated weighting factors.

At 360, version 2 of the serialized index is created. At this step, theconstituents of the version 2 of the serialized index may be definedalong with the associated weighting factors.

At 365, a financial instrument designed to track version 2 of the indexis created and listed by a financial exchange server. This financialinstrument will continue tracking version 2 of the serialized index evenafter subsequent versions of the serialized index are created.

At 370, buy/sell orders for the financial instrument designed to trackversion 2 of the serialized index may be received at the financialexchange server. At 375, a trade for the financial instrument designedto track version 2 of the serialized index may be executed, based on thereceived orders. At 380 the financial instrument designed to trackversion 2 of the serialized index may be settled.

It should be understood that exemplary methods illustrated in FIG. 3Aand FIG. 38 are provided as examples only. It should be understood thatfinancial instruments designed to track past and future versions of aserialized index maybe be listed and traded in a variety of othermethods.

With reference to FIG. 4, an exemplary composition 400 of severalversions of a serialized index are shown, according to one embodiment.This exemplary embodiment demonstrates possible constituent compositioncombinations 420, 430, 440 of several versions of a serialized index410. These serialized index definitions may be stored by an indexmaintainer server or by any suitable computing device.

The serialized index 410 may be defined and stored by an indexmaintainer server. Additionally, the definitions of version 1 of theserialized index 420, version 2 of the serialized index 430 and version3 of the serialized index 440 may be stored by an index maintainerserver. The constituents may be selected from a list that includes, butis not limited to, stocks, bonds, securities, commodities, mutual funds,other indices, swaps, forwards, option and derivatives.

In the exemplary embodiment shown in FIG. 4, version 1 of the serializedindex 420 comprises constituent 1, constituent 2 and constituent 3. Inthis exemplary embodiment, constituent 1 has a weighting factor of “1,”constituent 2 has a weighting factor of “2,” and constituent 3 has aweighting factor of “0.6.”

Version 2 (430) of the serialized index was created by changing theweighting factors of the constituents defining version 1 (420) of theserialized index. In this exemplary embodiment, constituent 1 of version2 (430) has a weighting factor of “2,” constituent 2 has a weightingfactor of “1.5,” and constituent 3 has a weighting factor of “1.”

Version 3 (440) of the serialized index was created by removing one ofthe constituents defined version 2 (430) of the serialized index andreplacing it with a different constituent. In this embodiment, version 3(440) of the serialized index comprises constituent 1, constituent 2 andconstituent 4. Constituent 1 has a weighting factor of “2,” constituent2 has a weighting factor of “1.5,” and constituent 4 has a weightingfactor of “1.”

It should be understood that exemplary version compositions are providedas examples only. It should be understood that new versions of theserialized index may be created by any combination of a list comprising,but not being limited to, adjusting weighting factors, addingconstituents, removing constituents and other changes.

The foregoing examples are provided merely for the purpose ofexplanation and are in no way to be construed as limiting. Whilereference to various embodiments are shown, the words used herein arewords of description and illustration, rather than words of limitation.Further, although reference to particular means, materials, andembodiments are shown, there is no limitation to the particularsdisclosed herein. Rather, the embodiments extend to all functionallyequivalent structures, methods, and uses, such as are within the scopeof the appended claims.

The invention claimed is:
 1. A method for maintaining a serializedindex, comprising: defining, by one or more computing devices, one ormore versions of a serialized index; transmitting a first of the one ormore versions of the serialized index to one or more financialinstitution servers; and transmitting a second of the one or moreversions of the serialized index to the one or more financialinstitution servers, wherein the first and second versions of theserialized index are simultaneously tracked by two or more financialinstruments.
 2. The method of claim 1, wherein defining one or moreversions of the serialized index further comprises identifying one ormore constituents, each having a constituent weighting, selected fromthe group consisting of one or more stocks, bonds, securities,commodities, mutual funds, other indices, swaps, forwards, options, andderivatives.
 3. The method of claim 2, wherein the first and secondversions of the serialized index each comprises a different combinationof constituents and constituent weightings.
 4. The method of claim 1,wherein at least one of the two or more financial instruments comprisesa financial derivative comprising one of a futures contract, a forwardscontract, an options contract, and a swap contract.
 5. A system fortrading financial instruments, comprising: an index server configured toprovide a serialized index comprised of a plurality of index versions; afinancial institution server configured to provide one or more financialinstruments that track the plurality of index versions; and an exchangeserver configured to list for trading the one or more financialinstruments, wherein each of the one or more financial instruments tracka different one of the plurality of index versions.
 6. The system ofclaim 5, wherein the plurality of index versions comprises at east onecurrent version and one or more prior versions.
 7. The system of claim6, wherein the exchange server is further configured to list at leastone other financial instrument that tracks the at least one priorversion.
 8. The system of claim 5, wherein each version of the pluralityof index versions comprises one or more constituents, each having aconstituent weighting, selected from the group consisting of one or morestocks, bonds, securities, commodities, mutual funds, other indices,swaps, forwards, options, and derivatives.
 9. The system of claim 5,wherein at least two successive versions of the plurality of indexversions differ from each other.
 10. The system of claim 9, where the atleast two successive versions of the plurality of index versions differby one or more of a selection of constituents, a combination ofconstituents and constituent weightings.
 11. The system of claim 5,wherein the exchange server if further configured to list for tradingthe financial instrument according to terms specified in the financialinstrument including the particular version of the serialized index thatis tracked by the financial instrument.
 12. The system of claim 5,wherein a settlement module embodied in the exchange server is furtherconfigured to settle or clear the financial instrument that has beentraded.
 13. The system of claim 5, wherein the at least one of financialinstruments is a financial derivative comprising one of a futurescontract, a forwards contract, an options contract, and a swap contract.14. A system for creating and maintaining a serialized index, the systemcomprising: an index server comprising one or more processors configuredto execute computer executable instructions stored in a non-transitorymemory, said computer executable instructions defining: a configurationmodule configured to define a first version of a serialized index and asecond versions of the serialized index; a transmission moduleconfigured to transmit the version definitions of each of the first andsecond versions of the serialized index to one or more financialinstitution servers, wherein the first version of the serialized indexand the second version of the serialized index are simultaneouslytracked by two or more financial instruments.
 15. The system of claim14, wherein the first and second versions of the serialized index eachcomprises a combination of constituents and constituent weightings, saidconstituents being selected from the group consisting of one or morestocks, bonds, securities, commodities, mutual funds, other indices,swaps, forwards, options, and derivatives.
 16. The system of claim 15,wherein the first and second versions of the serialized index eachcomprises a different combination of constituents and constituentweightings.
 17. The system of claim 16, wherein at least one of the twoor more financial instruments comprises a financial derivativecomprising one of a futures contract, a forwards contract, an optionscontract, and a swap contract.